RBC Initiates Jumia Technologies at Sector Perform with $5 Price Target

Jumia Technologies AG , Africa’s prominent e-commerce platform, has launched a new integrated warehouse and logistics facility in Tema, Ghana.

This investment reinforces Jumia’s commitment to Ghana’s e-commerce growth and aligns with its strategy to optimize operations across Africa, following similar expansions in Nigeria, Morocco, Egypt, and Cote d’Ivoire.

The new 6,000-square-meter Tema warehouse boosts Jumia’s storage capacity, enhancing supply chain efficiency, reducing delivery times, and strengthening its position as Ghana’s top online shopping destination. Located strategically in Tema, the new warehouse enhances access to key transport routes, supporting efficient nationwide distribution.

According to Francis Dufay, CEO of Jumia, the expansion underscores Jumia Ghana’s success and commitment to the Ghanaian market. Dufay highlighted that the enhanced logistics infrastructure strengthens Jumia’s ability to address evolving customer needs and support e-commerce growth, enabling a broader product selection, faster delivery, and increased convenience for customers.

“The increased space and advanced infrastructure will also allow us to streamline our operations, improve order fulfilment, and deliver an even better shopping experience for our customers,” said Fiacre N’Guessan, Chief Supply Chain Officer of Jumia Ghana.

Price Action: JMIA shares are trading higher by 1.05% at $3.86 premarket at the last check Monday.

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The most recent trading session ended with Jumia Technologies (JMIA) standing at $4.57, reflecting a -0.65% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.41%. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 0.8%.

Coming into today, shares of the company had lost 17.27% in the past month. In that same time, the Retail-Wholesale sector lost 1.22%, while the S&P 500 lost 0.97%.

Analysts and investors alike will be keeping a close eye on the performance of Jumia Technologies in its upcoming earnings disclosure. The company's earnings report is set to go public on November 7, 2024.

JMIA's full-year Zacks Consensus Estimates are calling for earnings of -$0.25 per share and revenue of $208.18 million. These results would represent year-over-year changes of +74.49% and +4.57%, respectively.

It is also important to note the recent changes to analyst estimates for Jumia Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Jumia Technologies holds a Zacks Rank of #3 (Hold).

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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The latest trading session saw Jumia Technologies (JMIA) ending at $4.76, denoting a +1.06% adjustment from its last day's close. This move outpaced the S&P 500's daily loss of 0.03%. Elsewhere, the Dow saw a downswing of 0.61%, while the tech-heavy Nasdaq appreciated by 0.56%.

Shares of the company witnessed a loss of 9.6% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 0.9% and the S&P 500's gain of 1.39%.

Market participants will be closely following the financial results of Jumia Technologies in its upcoming release.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$0.25 per share and a revenue of $208.18 million, indicating changes of +74.49% and +4.57%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Jumia Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Jumia Technologies holds a Zacks Rank of #3 (Hold).

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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